Alibaba Group Holding Limited (Alibaba) revealed its New Manufacturing model for the first time with the unveiling of Xunxi Digital Factory (Xunxi).
Powered by Alibaba’s cloud computing infrastructure and Internet of Things (IoT), the Hangzhou-based factory offers Small and Medium Enterprises (SMEs) a digitalized end-to-end manufacturing supply chain that allows for fully-customized, demand-driven production.
This gives smaller businesses and manufacturers in particular the ability to benefit from the digitalization of China’s over RMB30 trillion (over USD4 trillion) manufacturing market through being able to respond better and quicker to customers’ changing needs.
The Chief Executive Officer of Xunxi Digital Technology Company, Alibaba Group, Alain Wu said, data is the core of New Manufacturing and harnessing data insights is key to capturing new opportunities in the shift in consumer preference for personalized rather than mass-produced goods.
“New Manufacturing transforms traditional manufacturers with data-driven intelligence and technology to move towards a more agile model of production based on real-time demand.
“This allows traditional manufacturers to improve profitability and reduce inventory levels while still being able to meet these personalization needs,” he said.
The introduction of New Manufacturing is another milestone in the implementation of Alibaba’s Five New strategy which was first introduced by founder Jack Ma in 2016, and comprises New Retail, New Manufacturing, New Finance, New Technology and New Energy.